NOVA Green Energy is an open-end mutual fund of qualified investors (hereinafter only “Fund”) investing in equity of companies operating small and medium facilities (1-4 MW) that generate power from renewable sources of energy in the Central and Eastern Europe, particularly in the Czech Republic and Slovakia.
The yield of the Fund is steady because it’s based on feed-in tariffs of electricity for a period of 15 – 20 years; moreover these prices exceed a common market electricity price. Those factors together with effective asset management reflect in economic result of the Fund. Thus, this type of investment resembles in terms of risk government bonds with 10 – 15 year maturity; however the yield is significantly higher around 8 % p.a.
The Fund aims to be the best option for conservative investors expecting stable government guaranteed income and adequate capital appreciation in the area of renewable sources. Strict regulation framework, clearly set management motivation, a respected fund manager, expert and auditor as well as other institutional and project guarantees ensure maximum transparency of NOVA Green Energy, open-end mutual fund, following the model of Western Europe investment funds.
Who is the Fund designed for?
This Fund with medium and long time-horizon is designed for institutional and private investors looking for capital appreciation around 8% p.a. Investing in the Fund means that an investor buys a share of the Fund. Continuous investment appreciation shows in terms of increased value a unit certificate. The Fund’s yield is not paid continuously in a dividend form, however every shareholder may under certain conditions request a partial redemption (buy back) of its unit certificates. The capital gains are then successfully, in accordance with the investment strategy, reinvested, and in this manner the certificate units of every investor are appreciated.
What type of institutions is the investment suitable for?
The investment in the fund with medium and long time-horizon is designed for institutional investors with strictly defined requirements regarding the liquidity of assets invested, such as insurance and pension schemes.
At the same time, the Fund is an open-end mutual fund of qualified investors. Thus, the investment is highly secure because as any other open-end mutual fund on the Czech market it has to comply with all legal requirements and rules, in particular Act No. 240/2013 Coll., on Investment Companies and Investment Funds.
The spectrum of investors consist of institutional investors, such as Czech and foreign banks, insurance companies and securities dealers as well as individuals, in particular managers of multinational companies and Czech entrepreneurs.
How to Invest
The investment in the Fund is exclusively intended for persons matching the definition of a qualified investor in compliance with Act No. 240/2013 Coll., on Investment Companies and Investment Funds, therefore it is necessary to invest at least 125,000 EUR (3,500,000 CZK) and sign a Declaration of Risk Awareness concerning this type of investment and including investment experience.
Subsequently, the investor wishing to make investments fill out the following documents with the fund manager:
+ Agreement on Subscription/Redemption of Unit Certificates
+ Request for Issuance of Unit Certificates
+ Declaration of Risk Awareness
+ Anti-Money Laundering (AML) Form
Issuance/Redemption of Unit Certificates
The fund issues registered unit certificates at the nominal value of 0.1 EUR or 1 CZK.
The redemption of unit certificates is ongoing throughout a year process and the redemption periods by the investment company are set according to the size of required redemption amount. In case of the investment up to 10 million CZK the period is maximum 4 months from the end of the month in which the investment company received the request for redemption. In the period starting from the delivery of the request until the redemption of unit certificates, the unit certificates do not bear any interest.
The investment into the Fund is not time limited. The minimum recommended investment horizon is 4 years.
|Fund type||Open-end mutual qualified investors fund|
|Fund focus/objective||Renewable sources of energy ; corporate bonds
Private equity in medium-sized companies engaged in business of renewable energy; corporate bonds of prosperous companies
|ISIN CZK class||CZ 000 847 46 73|
|ISIN EUR class||CZ 000 847 40 53|
|Net Asset Yield 2014||7.71 % p.a.|
|Net Asset Yield 2015||8.25 % p.a.|
|Fund Capacity||170 million EUR|
|Fund size as of 31 March 2016||35.3 million EUR|
|Issued security||Dematerialized registered unit certificates at nominal value of 0,1 EUR or 1 CZK|
|IRR||7 - 8 % p.a.|
|Fund duration||Since January 2013 for an indefinite period|
|Minimal investment||35,000 EUR for qualified investors under Section 272 (1) (a) to (h) ZISIF, 125,000 EUR /3,750,000 CZK in any other cases|
|Recommended investment horizon||4 years|
|Entry fee||max. 3 % for investments up to 250,000 EUR / 7,500,000 CZK, otherwise 0 %|
|Fund manager||REDSIDE, Fund Management|
|Total annual costs||Max. 1.95 % from NAV of the Fund|
|Performance fee||30 % from annual yield over 10% IRR|
|Supervisory authority||Czech National Bank|
|Law and accounting system||Czech Republic|
|Taxation||5 % from profit|
The fund is managed by REDSIDE Fund Management, which was pursuant to Act 240/2013 Coll., on Investment Companies and Investment Funds granted the licence by the Czech National Bank to perform management and administration of investment funds. REDSIDE focus consists in providing professional management of qualified investors’ funds, including establishment of separate fund structures and their subsequent management and administration. The size of Assets Under Management (AUM) exceeded 200 million EUR in May 2016.
REDSIDE was founded as a result of joint business engagement of two companies i.e. ASB and Arca Capital. ASB Group was established in 2002 and it provides a wide range of services including administration support, accounting, reporting, tax advisory and trust management in Central and Eastern Europe. Its offices with more than 110 employees are located in Prague, Warsaw and Bratislava. Among ASB’s clients belong companies, such as Standard Life Savings, AVIVA fund, Pradera, Pramerica Real Estate Investors atp..)
Arca Capital and REDSIDE created a strong and experienced team providing top quality services in the area of fund management.
The selection process of assets is carried out by experienced team of experts from the investment group Arca Capital. Arca Capital is a dynamic group, a type of holding that has been engaged in private equity business and the provision of financial services for more than 15 years in CEE region. The asset volume exceeded 700 million EUR in February 2016. The group has a clearly defined investment strategy targeting investments that generate long-term and sustainable revenues. Its investments mostly involve energy, real estate including development, fast-moving consumer goods (CFMG) and new technologies.